USDX (USD Index)

No change in the U.S dollar index outlook as Monday trading session end in flat close. The index closed at 92.02 and waited for a catalyst for next movement. We expect the index to continue its sideways movement until the Fed interest-rate decision later this Wednesday.

News to watch

08.30 AM U.S Building Permits, estimated annualized 1.22 million permits issued.

For full outlook for this week, you can follow Forex Outlook For The Week 18 – 22 Sep 2017

Technical Analysis

EUR/USD

EUR/USD continue higher after the bounce from the level near the bottom of the yellow range. The pair could continue toward the top of the range and wait for the interest-rate decision from the Fed. Traders could look for short position near the top of the range and enter after the interest-rate announcement.

Today critical level to watch:

Support: 1.1925, 1.1900, 1.1820, 1.1710

Resistance: 1.2000, 1.2070

GBP/USD

Bullish momentum on GBP/USD chart continues strong even though previous day candlestick closed as a bearish candle. The pair bounces from 1.3500 today and might continue upward.

Today critical level to watch:

Support: 1.3500, 1.3400, 1.3300

Resistance: 1.3600, 1.3700, 1.3835, 1.4000

USD/JPY

USD/JPY is getting near its daily SMA 200 and already reach the 111.50 target. Next resistance above the current level is 112.00. Looking at the bullish momentum, the pair might continue upward without a problem, and there is no reason to take a short position yet.

Today critical level to watch:

Support: 111.60, 111.00, 110.50, 109.00, 108.80

Resistance: 112.00, 112.50

AUD/USD

AUD/USD closed as bearish engulfing candlestick and indicate more bearish move shortly. However, there is no conclusion yet as the bear need a close below the bearish engulfing candle to confirm it. Meanwhile, the pair might return above 0.8000 and cancel the bearish pattern.

Today critical level to watch:

Support: 0.7970, 0.7900

Resistance: 0.8000, 0.8100